WASHINGTON, D.C. — Although overall consumer delinquencies reached a record mark during the second quarter, auto loans — both direct and indirect — showed significant improvement during the period, according to the American Bankers Association.

Specifically, direct auto loan delinquencies dropped 55 basis points to 2.46 percent, while indirect auto loan delinquencies were at 3.26 percent, compared with 3.42 percent in the first quarter, ABA indicated.

Overall, however, record rates of consumer delinquencies have been reported for the second quarter, thanks largely to continued job loss, shorter work week and declining income.

In fact, home equity loans, home equity lines of credit and bank cars all hit record quarterly delinquency rates, according to ABA.

Meanwhile the composite ratio — which measures eight closed-end installment categories — hit 3.35 percent, another record high and up from 3.23 percent in the first quarter.

According to ABA chief economist James Chessen, these high delinquency rates reflect the collective impact of the recession, which has been the longest since the Great Depression.

"Six consecutive quarters of job losses have taken their toll," Chessen explained. "With jobs lost and work hours cut, it doesn't take long for the financial pressure to become overwhelming. 

"Falling behind on debt payments is an unfortunate side effect of high unemployment and a frozen job market," he continued. "The picture won't change until the labor market improves and the economy picks up steam. This is going to take time."

Chessen did, however, offer a bit of a silver lining.

"The good news is that consumers are clearly being more cautious by saving more, spending less and making great efforts to repair their balance sheets," he commented.

On seasonally adjusted, ABA released the following delinquency figures:

—Home equity loan delinquencies rose from 3.52 percent to 4.01 percent.

—Marine loan delinquencies rose from 2.04 percent to 2.28 percent.

—Personal loan delinquencies rose from 3.47 percent to 3.90 percent.

—Property improvement loan delinquencies rose from 1.46 percent to 1.79 percent.

—RV loan delinquencies rose from 1.52 percent to 1.72 percent.

—Direct auto loan delinquencies fell from 3.01 percent to 2.46 percent.

—Indirect auto loan delinquencies fell from 3.42 percent to 3.26 percent.

—Mobile home loan delinquencies fell from 3.70 percent to 3.53 percent.